Fifth Third Bancorp Sells 43,860 Shares of McDonald’s Corporation $MCD

Fifth Third Bancorp decreased its position in McDonald’s Corporation (NYSE:MCD) by 5.9% in the third quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 701,961 shares of the fast-food giant’s stock after selling 43,860 shares during the period. Fifth Third Bancorp owned about 0.10% of McDonald’s worth $162,111,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the company. State Street Corp boosted its stake in shares of McDonald’s by 1.8% during the 2nd quarter. State Street Corp now owns 36,080,505 shares of the fast-food giant’s stock worth $9,752,921,000 after acquiring an additional 646,675 shares in the last quarter. Bank of New York Mellon Corp acquired a new stake in shares of McDonald’s during the 2nd quarter valued at about $1,359,276,000. Arrowstreet Capital Limited Partnership increased its stake in shares of McDonald’s by 17.2% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 3,637,785 shares of the fast-food giant’s stock valued at $1,130,587,000 after purchasing an additional 533,448 shares in the last quarter. Swiss National Bank increased its stake in shares of McDonald’s by 6.9% in the 1st quarter. Swiss National Bank now owns 2,089,980 shares of the fast-food giant’s stock valued at $649,545,000 after purchasing an additional 134,480 shares in the last quarter. Finally, Dimensional Fund Advisors LP increased its stake in shares of McDonald’s by 3.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,909,321 shares of the fast-food giant’s stock valued at $593,366,000 after purchasing an additional 62,562 shares in the last quarter. Hedge funds and other institutional investors own 70.29% of the company’s stock.

More McDonald’s News

These are some of the MCD news items that stood out recently:

• Positive Sentiment: McDonald’s and Uber are expanding their delivery and loyalty partnership across 14 markets, including the U.S. and U.K. The effort could increase delivery orders, improve customer engagement and generate incremental sales. McDonald’s and Uber expand delivery and loyalty tie-up
• Positive Sentiment: An analyst upgrade was reported overnight, providing a potential positive signal on the stock, though the headline does not identify the analyst’s rationale or price target. McDonald’s Stock Price Up 1.8% on Analyst Upgrade
• Negative Sentiment: A market commentary says Treasury yields near 5% are pressuring valuations across stocks. Higher yields can make dividend-paying shares like MCD less attractive relative to bonds and weigh on valuation multiples. Bonds Are Paying 5% Again

Analyst Ratings Changes

A number of research firms recently weighed in on MCD. Freedom Broker cut McDonald’s from a “buy” rating to a “hold” rating and reduced their price target for the stock from $305.00 to $298.00 in a report on Thursday, November 5th. Loop Capital dropped their price objective on McDonald’s from $301.00 to $273.00 and set a “hold” rating on the stock in a report on Wednesday, August 5th. KeyCorp boosted their price objective on McDonald’s from $280.00 to $307.00 and gave the company an “overweight” rating in a research report on Thursday, November 5th. Tigress Financial upped their target price on McDonald’s from $385.00 to $390.00 and gave the stock a “buy” rating in a research note on Friday, July 17th. Finally, Evercore decreased their target price on McDonald’s from $320.00 to $300.00 and set an “outperform” rating on the stock in a research report on Thursday, September 24th. Two analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, fourteen have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, McDonald’s has a consensus rating of “Moderate Buy” and a consensus target price of $297.82.

McDonald’s Trading Down 2.4%

Shares of NYSE MCD opened at $275.30 on Thursday. McDonald’s Corporation has a 12-month low of $229.20 and a 12-month high of $341.75. The stock has a market cap of $194.30 billion, a PE ratio of 21.78, a P/E/G ratio of 3.26 and a beta of 0.42. The company has a 50-day moving average of $249.73 and a 200 day moving average of $282.16.

McDonald’s (NYSE:MCD) last released its earnings results on Wednesday, November 4th. The fast-food giant reported $3.57 earnings per share for the quarter, topping analysts’ consensus estimates of $3.38 by $0.19. The business had revenue of $7.16 billion for the quarter, compared to analyst estimates of $7.28 billion. McDonald’s had a net margin of 32.38% and a negative return on equity of 826.29%. The business’s revenue was up 1.1% on a year-over-year basis. During the same period last year, the company posted $3.22 EPS. On average, sell-side analysts forecast that McDonald’s Corporation will post 12.91 EPS for the current fiscal year.

McDonald’s Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Tuesday, December 1st will be issued a $1.93 dividend. This is a boost from McDonald’s’s previous quarterly dividend of $1.86. This represents a $7.72 annualized dividend and a dividend yield of 2.8%. The ex-dividend date of this dividend is Tuesday, December 1st. McDonald’s’s payout ratio is 61.08%.

McDonald’s Profile

McDonald’s Corporation is a global quick-service restaurant company that operates and franchises restaurants under the McDonald’s brand. Its restaurants serve a menu that includes hamburgers, cheeseburgers, chicken sandwiches, French fries, breakfast items, desserts, salads, beverages and coffee. Offerings vary by market, and many locations provide drive-thru service, delivery and digital ordering through the McDonald’s mobile app. The company operates through a heavily franchised business model, with restaurants owned and operated by independent franchisees, affiliates and the company itself.